An internal working group of the RBI headed by P.K. Mohanty in November last year recommended, among other things, that the RBI allow large industrial groups to set up banks. The group’s recommendation was seen by analysts as an effort to bring more private capital into the banking system and help increase lending. The proposal was met with criticism from many experts, including former RBI governor Raghuram Rajan and former RBI deputy governor Viral Acharya. (Read More)
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